Surveys indicate that 40% of SMEs will face a succession event over the next 5 years. For many it is the baby boomer generation of business owners who are looking to exit their business. This represents a large group of small business owners who, in the main, will retire over a 5-10 year period. But it’s not all about retirement. Increasingly business owner are buying or building businesses with a clear exit date in mind. Their strategy is to grow the business, sell it and move on to the next venture.
From these two groups, what is evident is that there will be a significant number of businesses that will come on to the market in the coming years or that will be managing some form of succession. Apart from business sales it could be a merger, generational succession, management buyout or even a listing. On the sheer numbers alone we are talking about over 400,000 businesses.
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Tags: generational succession | Succession planning & sale of business
Posted in Business Insight, Infotelligence, Sydney News & Events |
The coming 12 months promise a lot of volatility for business. Uncertainty around interest rates, the carbon tax debate, weak consumer sentiment and the possible ripple effect from problems overseas means that business will be working with a range of domestic and wider influences that will cause uncertainty. And this uncertainty will have upsides as well as problems for business.
Most SMEs are well downstream from major economic triggers. We don’t cause the problems but we are affected because of what is happening to larger business, the economy and consumers. Some industries are more impacted than others.
Expecting business in the coming year to be simply more of the same as in the past, is likely to be wishful thinking. If your business strategy is simply to turn up, work hard and expect business to come to you, then you are likely to be disappointed.
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Tags: Business strategy | Strategic business planning
Posted in Business Insight, Infotelligence |
It’s a new financial year and with it comes a series of changes and challenges. The central message for the new financial year is ‘cash is king’ and will remain so for some time to come.
While the economy is performing well, consumers are wary about parting with their cash. Part of the problem is that around 50% of Australia’s growth is coming from 10% of the economy. For the rest of the economy, petrol prices are high, interest rates are likely to rise, and the rate of debt default is at record highs.
Consumer sentiment shows that no one really feels as secure as the headline economic data indicates so discounting and long decision making processes are likely to continue.
For business, take the ‘cash is king’ message to heart. Some very high profile and established businesses have dissolved recently so stick to your trading terms and watch your debtors or you may be caught out by someone else’s problem.
Tags: 2011/12 Financial year | cash flow | Income tax | PAYG | R&D Tax concession | Self Managed Super Funds | SMSF | Superannuation | superannuation guarantee | Tax & accounting compliance | Tax strategy and structuring
Posted in Business Insight, Infotelligence |
Why stop at art? What about collectors items – some fine wine perhaps? Or, a few antiques?
The answer is yes you can, as long as the asset is genuinely for retirement income purposes, not for your personal use now, and not acquired from a related party. But the Government is looking closely at what SMSF’s acquire and how those assets are managed.
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Tags: Self Managed Super Funds | SMSF
Posted in Business Insight, Infotelligence |
Some tax planning only creates timing benefits rather than real savings. So the question is; what delivers real results? The majority of tax planning falls into one of three categories – health and hygiene decisions that every business should review each year, timing benefits, and permanent savings.
The timing benefits do exactly that. They create tax savings that should ultimately materialise over the life of the business but they bring them forward.
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Tags: End of Year Reporting | Tax planning | Tax strategy and structuring
Posted in Business Insight, Infotelligence |
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